To invest in a gold IRA for retirement is to turn your retirement fund into a rock-solid future.
With current gold prices sitting at $1,320 an ounce, it is wise to make gold your main investment choice.
This is especially true when you understand that this is an increase from $1,245.51 since March of last year. That had also been a large increase from $1,127.82 since the beginning of 2015.
It is highly advised to invest in physical gold and precious metals through an IRA (individual retirement account). This is much better than investing in gold and precious metals through paper assets like stocks, bonds and cash. (See Main Page: Best Gold IRA Options)
What is a Gold IRA?
The majority of IRA’s invest in more traditional assets like stocks, bonds, and cash equivalents. However, the tax code also permits “self-directed” IRA’s that can hold precious metals such as silver or gold. (View Page: Self-Directed IRA and Gold)
But this does not mean that all types of precious metals are allowed within an IRA.
The tax code designates specific gold, silver and platinum coins for qualification – these three. It also sets the purity qualification standards for gold, silver, platinum or palladium bars that are IRA-approved. Other forms of precious metals such as collectible coins and jewelry are not allowed. (View all IRA-Approved Precious Metals)
How Can I Set Up A Gold IRA?
In order to properly set up a Gold IRA, you must first find a trustworthy Gold IRA custodian. They will help you store your physical precious metals coins and bullion in their secure depository. The depository will be responsible for transporting and holding your gold and/or precious metals. (View: Top 10 Gold IRA Companies)
The next step is to actually buy the physical IRA-approved gold or precious metals coins or bullion. The Gold IRA custodian will then transfer those assets to the depository and record them appropriately
Examples of accepted forms are the gold and silver American Eagle and Canadian Maple Leaf coins, the Austrian Philharmonic coin, PAMP Suisse Gold bars, Sunshine Gold and Silver Bars and most platinum bars.
Gold IRA vs. Other Retirement Plans
- Type of eligible precious metals you want in your portfolio;
- Form of metals you prefer – bars, bullion or even coins.
- You are in charge of what your investment looks like and that is very important to baby boomers.
When you choose a Gold IRA for retirement, you back your investment by physical assets such as gold, silver, palladium and platinum.
In 1997 Congress created the rule that allows this and the former director of the United States Mint, Edmund C. Moy was there to oversee the world’s largest production of coins made from gold and silver.
Criteria for Precious Metals to be Held in an IRA
- These metals cannot be held by the IRA owner themselves. They must rather remain in the possession of the IRA trustee and stored in a specially approved depository.
- It must meet specific fineness standards. (View Main Page :IRA-Approved Precious Metals)
- It is not allowed to keep bullion or bars in a home closet or safe, nor can you place them in a safety deposit box at a bank for safe keeping.
- With Roth IRA’s and other traditional IRA’s,your money is invested in mutual funds, stocks and/or bonds and that make them vulnerable to the adverse effects of inflation. Since the price of gold typically increases over time, including a Gold IRA in your retirement plan is like having an insurance policy for your portfolio. The smart choice for investing in a retirement fund is to approach it in a balanced manner to reduce the risks.
A History of the Robust Growth of Gold IRA for Retirement
Gold IRA’s in the Past Were Not So Convenient
In the past, investing in precious metals backed IRA’s was not as popular as it is today. It had to do with the complicated process investors had to deal with of selecting an IRA provider that will accept gold as an investment option.
It was necessary for those interested to find a custodian or trustee in addition to an approved depository for all this to work. For this reason, only persistent and experienced investors were the majority of Gold IRA owners.
Modern Gold IRA Companies – Made by Crisis Demand
In the aftermath of the 2008 financial crisis, Gold IRA’s gained more attention with the general public. The resulting effect was that a great number of companies sprang up to handle the increasing amount of precious metal sales.
This made transactions simpler for anyone interested in this form of investing in a one-stop shopping sort of way. Robust growth of Self-Directed IRAs such as the Gold IRA was the natural result.
World and economic news also had an impact on the rise of interest in the Gold IRA.
Another key factor to its growing interest was the potential impact of inflation caused by stimulus programs implemented by the Federal Reserve.
What Should I Look For in a Gold IRA Custodian?
- Cost Transparency – Ask as many questions as necessary to find out about what it will cost so that there are no surprises or hidden fees. It is best to choose a company with a low, flat yearly fee.
- Company Reputation and Record of Performance – The Business Consumer Alliance (BCA) and the Better Business Bureau (BBB) are great places to start when checking the reliability and track record of a Gold IRA company. You should also check actual consumer reviews and complaints filed against various companies.
- Flexible to Client Needs – Investor goals and needs vary, and there is no such thing as a one-size-fits-all investment strategy. You want a company that caters to your individual requirements without lumping you in with all the rest of their clients.
- Credentials and Qualifications – Any company with which you invest your hard earned money and financial future should be one that is insured and bonded for your protection by having all the necessary registrations and licenses.
- Stockpiling Options – It is best to choose a company that will allow you to stockpile your gold, silver or precious metals coins or bullion with segregated stockpiling. This is much safer than co-mingled stockpiling in which your coins or bullion are stored together with those of others and are only separated by record-keeping.
- Buyback Program – Make sure the company has a good buyback program with no strings attached. The best company has a client-friendly buyback program all days of the week for any precious metals. They will also make sure you receive the funds in your money within 24 hours of purchase.
- Customer Service – Avoid pushy salesmen, especially those who insist you buy collectible coins that are not even approved for IRA’s.
Find the Best Gold IRA Company
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